Managing your. Construction Loan

Transcription

1 Managing your Construction Loan

2 Your application reference number You can locate your application reference number on the top left hand corner of the covering page of your Mortgage Loan Agreement. Please quote this number in all your correspondence to help us process your loan efficiently. P&N Bank Level 7, 130 Stirling Street PERTH WA 6000 DISBURSEMENT AUTHORITY/ACCOUNT INSTRUCTIONS Membership Number: Name: With regards to my/our loan application for $390, would you please disburse the proceeds in the following manner: Police & Nurses Limited (P&N Bank): Construction Prog Inspect Fee $ Loan Establishment Fee $0.00 Progress Pmt Inspect Admin Fee $ Search Admin Fee $25.00 Government Fees/Charges: 0 Registration of Mortgage - Gov (WA) $ Title Search Fee (WA) $36.90 Disbursement Instructions: 0 Managing your Construction Loan Congratulations on the approval of your home loan. This document provides you with information on how your construction loan will be processed with the objective to make the process as easy as possible for you, our member. Payee: Gemmill Homes - Slab Post/Collect: $45, Payee: Subdivision cost Post/Collect: $50, Payee: Swimming Pool - Final Invoice Post/Collect: $15, Payee: Gemmill Homes - Variations Post/Collect: $70, Payee: Gemmill Homes - Final Post/Collect: $50, Payee: Gemmill Homes - Lock-up Post/Collect: $50, Payee: Gemmill Homes - Roof Post/Collect: $55, Payee: Gemmill Homes - Plate Post/Collect: $45, Payee: Swimming Pool - Deposit Post/Collect: $10, Balance to be deposited to my/our P&N Bank savings account. If applicable please tick the nominated account number and complete the amount required. Member No. Account Type: Account No. Total loan $390,

3 Proceeds from your approved loan amount The Disbursement Authority forms part of your loan documentation. This document provides you with details of loan proceeds payable by P&N to the seller/settlement agent, your builder and other parties specified by you at the time of your home loan application. The payments to the builder are listed as per the schedule of particulars in the building contract, any variations to the building contract and quotes for any additional work(s) provided to us before the approval of your home loan. Your own funds contributing towards construction Please note that if you are contributing your own funds towards the construction costs, this must be paid to the builder as per the construction schedule before P&N can start processing the progress payment request from your approved construction loan. Your construction period Your construction must commence within 6 months from your approval date and be completed within 24 months of the initial funding. Processing your builder s first claim Please ensure that the council approval, home indemnity insurance and course of construction insurance are submitted to P&N by you or your builder along with a copy of the tax invoice for the first claim. First Home Owner Grant (FHOG) payment If you are eligible for a FHOG payment and have submitted your completed FHOG application for your loan, we will process your FHOG payment at the time of receipt of the progress payment request from you or your builder at the Slab stage or later. P&N must receive the FHOG funds from the Office of State Revenue before the first progress payment instalment can be made. Valuations All P&N construction loans require at least two valuations during the construction of your home. However, additional valuations may be required based on the size and type of your project. You and your builder must allow P&N representatives to access the construction site at any time for matters relating to your loan. On receipt of each progress claim from you or your builder, we will assess if a valuation is required. Please ensure that the builder s invoice is sent to us immediately so that we can pay your claim within the due date specified in the invoice. Our turnaround time for claims processing is 7 working days where a valuation is required. If a valuation is not required claims are processed within 2 working days. We will contact you prior to paying a claim if we note any adverse findings on the Valuer s report (e.g. work not completed for a given stage of construction, work not completed as per plans) Payment method Each progress payment request will be paid via Electronic Funds Transfer. Please allow 48 hours for funds to reach the builder s / vendor s account. Unless otherwise specified and approved, the additional works amount will be paid directly to the vendor as listed in the Disbursement Authority. 4 5

4 Variations Once your loan has been approved, if there are any variations to the building contract or council approved plans that increase the overall construction loan amount, you may need to either borrow additional funds to cover the new variations (subject to approval) or alternatively, pay the builder from your own funds. Your repayments during construction During the construction of your home, only the interest amount for the outstanding balance of the construction loan is payable. The interest only amount will increase as the loan balance increases with subsequent progress payment instalments. We will set up a calculated repayment for the interest only amounts from your nominated account as per instructions on your Loan Repayment Authority and this interest only amount is payable on the 1st of each month. During this time, you are welcome to make additional repayments over and above the interest only payments. Please ensure that your nominated account has sufficient funds for the interest only repayment and that your interest payments are up to date. Your repayments after completion If your loan is a principal and interest loan, after the payment of your final claim, we will set up the minimum principal and interest repayment from your nominated savings account as per your Loan Repayment Authority. You are welcome to make additional repayments over and above this amount after completion of your construction. If your loan is an interest only type, the interest only repayments will continue after the completion of your property. More information call us on visit pnbank.com.au, drop into your local branch, or speak to your Mortgage Broker 6 7

5 Police & Nurses Limited ABN AFSL Australian Credit Licence PO Box 8609 PERTH BC WA 6849 Tel: pnbank.com.au B-514 (06/16)